Planning For Success After COVID-19: Cost Efficiency

2021-03-04| Austen Hancock

What is changing?

Low interest rates, challenging economy, Brexit and in some cases a 'fight for survival' means cost pressures are even more relevant today. However, COVID-19 has shown that we need and can be more radical in our approach, that if managed correctly many organisations can withstand significant change. Therefore, is this an opportunity to make more fundamental changes to building a more cost-effective business?

How will this impact you?

To get ahead of the competition you need to think creatively about how to unlock further efficiency opportunities without compromising the service you deliver to your customers. We know from experience this is easier said than done. To help, we have a Cost Diagnostic Framework, which gives you a quick way of targeting where and how to spend your effort and money for maximum return on investment.

What do you need to do about it?

1. Organisational synergies - Would a restructure or the introduction of new solutions improve your business? Investing now could create long-term opportunities.

2. Location footprint - Assess whether your premises are right for your business. The shift to remote working is a good chance to think about the floorspace you need.

3. Employment costs - Look beyond headcount reduction and find ways to make sure all of your employees are working as productively as possible.

4. Business process efficiency - Reviewing your systems and processes will help you pinpoint how you can tighten them up and where automation might improve how you operate.

5. Technology - Improving your technology infrastructure may be complex and costly in the short term, but you’ll be building efficiency into your organisation for years to come.

6. Outsourcing - Bringing in the skills and experience of an external provider could be more effective than keeping everything in-house.

7. Third-party supplier management - Could you be managing supplier relationships more efficiently, through consolidation or bulk discounts?

8. Change and projects - Agile businesses that adapt quickly to changing demands are able to more efficiently fine tune their projects to overcome new challenges.   

How can we help?

This is a snapshot of just some of the ways you can look to drive sustainable cost efficiencies in your organisation. As you can see, there’s a lot of opportunity. The challenge is selecting the right approach for you. That’s where we come in. We’ve used the 10 lenses to help a wide range of organisations drastically reduce their cost base – if there are opportunities for savings in your organisation, we’ll find them.

PEN are working with many clients to understand how to best approach a Post Covid world and identifying the best strategies for each organisation.

If this or any of our other related Covid articles interest you then please get in touch with Associate Partner Helen Clark.

Further reading:

What Does Your Organisation Need To Consider When Planning For Success After Covid-19?

10 Cost Efficiency Opportunities In Banking

Cost Optimisation Remains One Of The Most Challenging Frontiers For Insurers

Contact Helen Clark:

Email: helen.clark@penpartnership.co.uk

Phone: +44 (0)7585 111 518

Connect on LinkedIn